Meeting: The first meeting of the Industrial Processing Committee was held on Thursday, January 15, 2004, beginning at 10:00 a.m. in the Hoover State Office Building. The first meeting was an organizational meeting. The members discussed the scope of the legislation, the role of the committee and identified various issues for further discussion. The members elected Dwayne VandeKrol and Jason Wilson as co-chairs of the committee.
Members Present: Bill Burns, Cedar River Paper Co.; Paul Chovan, ALCOA; Mike Eversmeyer, Varied Investments, Inc.; Tom Iles, Deere & Company; Jeff Johnson, PricewaterhouseCoopers; Stacey Johnson, Iowa Taxpayers Assn.; Ted Miller, Ernst & Young; Rick Smith, Clow Value Co.; Daryl Jendras, American Express Tax & Business Services; Dwayne VandeKrol, Deloitte & Touche; Jason Wilson, RSM McGladrey; Erv Fett, Department of Management; Marcia Mason, Assistant Attorney General; Darwin Clupper, Department of Revenue; and David Casey, Department of Revenue.
Members Absent: Dave Krutzfeldt, Panel Components Corp.; and Steve Roberts, Davis, Brown, Koehn, Shors & Roberts, P.C.
Issues Identified for Future Discussion: The following issues were identified as discussion points for future meeting:
Definitions-Cleanup, add new definitions, create examples.
Review of Iowa Code Section language & how the Code is arranged.
Comparison of exemption with exemption in other states.
Consistency in the application of the exemption.
Integrated Plant Theory.
Machinery & Equipment used to perform repairs.
Services-repair, remodeling, rebuild, used by a manufacturer, installation services.
Replacement Parts, supplies, ie. machine cloth.
Computers and computer software.
Food manufacturer exemption.
Utilities – equipment, electricity, gas, water.
Internal maintenance activities and quality control.
Real versus personal property distinction.
Containers, pallets, packaging items.
Definitions of manufacturer-not include retailer or contractor.
Negotiated Rate Agreement.
Review of rules from perspective of department and taxpayer.
Audit Process, Audit Methods, Audit Resolution, Audit Issues.
Streamlined Sales Tax Project and how it may effect this exemption.
Education-rules, brochures, training classes, plant tours.
Next Meeting: The next meeting is set for Friday, February 27, 2004, at 10:00. The meeting will be held in the Hoover State Office Building. There will also be the option of calling into a conference call.